Cipla posts 52% profit growth in June quarter

MUMBAI: Cipla, India’s second-largest pharmaceutical company by revenue, turned around its domestic business after a long slumber as the company declared a 30% growth in domestic sales for the quarter ended June 2012.

This growth in the domestic market helped Cipla clock a 52% increase in net profit to Rs 401 crore from Rs 253 crore in the same quarter of last financial year. Cipla’s revenues for this quarter were at Rs 1,864 cr, a 24% growth from the previous year.

One of the oldest drug companies of India, Cipla had recently cut the prices of key cancer drugs, however it has said that it will reduce its exposure to manufacturing HIV drugs.

The export business of the company grew by 23% to Rs 810 crore, up from Rs 659 crore, primarily driven by the sale of anti-cancer and anti-depressant drugs.

This quarter, Cipla’s domestic business has seen a remarkable turnaround, putting to rest all the criticisms of the analysts who had written off the company a year back.